HMRC are increasing their scrutiny of R&D claims. It is now more important than ever to work with an R&D adviser who knows their stuff.

HMRC’s investment in additional resources to check the accuracy of R&D relief claims means an increase in ‘nudge’ letters issued, as well as enquiries being opened into R&D claims.

It is critical to ensure that you can demonstrate the accuracy of any R&D claims submitted, and that you are prepared to respond to any questions that HMRC may ask on review of the claim. Failure to do so could result in a longer, more detailed enquiry which will require significant resource as well as delay receipt of any payment. Furthermore, if any errors are identified then you may also be liable to penalties in addition to a reduction in the benefit received.

What should you do?

In order to demonstrate the accuracy of any R&D claim, the below are examples of the questions you should consider for your R&D claim(s):

  • What supporting evidence is prepared and is it retained on file?
  • Is the claim methodology fully documented and consistently applied?
  • What information is currently captured by the business, is it accurate and how has it been used to prepare the claim?
  • What real-time testing and controls are in place? Is a full audit trail available?
  • Does the claim comply with all legislative requirements?
We’re here to help

Magma’s considerable expertise in R&D claims can help mitigate against the risk of penalties being charged, and help you to demonstrate you have taken reasonable care in preparing your claim. Speak to a member of our team below.